Chapter 3

Chapter 3 Introduction to OLTP and OLAP
Fundamentals of Business Analytics RN Prasad and Seema Acharya Copyright 2011 Wiley India Pvt. Ltd. All rights reserved.
Learning Objectives and Learning Outcomes

Learning Objectives
1. OLTP (On Line Transaction Processing) 2. OLAP (On Line Analytical Processing) 3. OLTP vs. OLAP 4. Data model for OLTP and OLAP 5. Role of OLAP tools in the BI architecture 6. Should OLAP be performed directly on operational databases? 7. A peek into the OLAP operations on multi-dimensional data 8. Why ERP then? (b) To be able to perform OLAP operations on multidimensional data
Learning Outcomes
(a) To be able to model data for OLTP and OLAP systems
Session Plan
Lecture time Q/A
: 90 minutes approx. : 15 minutes
Agenda
Queries that an OLTP system can process Advantages of an OLTP system Challenges of an OLTP system The queries that OLTP cannot answer OLAP Advantages of an OLAP system OLTP vs. OLAP OLTP and OLAP Should OLAP be performed directly on operational databases? OLAP operations on multi-dimensional data OLAP in BI Leveraging ERP data using analytics
Answer a Quick Question
According to your understanding, what are some of the queries that OLTP systems can process?
Queries that an OLTP System can Process
Search for a particular customers record. Retrieve the product description and unit price of a particular product. Filter all products with a unit price equal to or above $25. Filter all products supplied by a particular supplier. Search and display the record of a particular supplier.
Advantages and Challenges of an OLTP System

Advantages of an OLTP System Simplicity It is designed typically for use by clerks, cashiers, clients, etc. Efficiency It allows its users to read, write and delete data quickly. Fast query processing It responds to user actions immediately and also supports transaction processing on demand. Challenges of an OLTP System Security An OLTP system requires concurrency control (locking) and recovery mechanisms (logging). OLTP system data content not suitable for decision making A typical OLTP system manages the current data within an enterprise/organization. This current data is far too detailed to be easily used for decision making.
The Queries that OLTP Cannot Answer
The super market store is deciding on introducing a new product. The key questions they are debating are: Which product should they introduce? and Should it be specific to a few customer segments? The super market store is looking at offering some discount on their yearend sale. The questions here are: How much discount should they offer? and Should it be different discounts for different customer segments?
OLAP
OLAP differs from traditional databases in the way data is conceptualized and stored. In OLAP data is held in the dimensional form rather than the relational form. OLAPs life blood is multi-dimensional data. OLAP tools are based on the multi-dimensional data model. The multi-dimensional data model views data in the form of a data cube.
Explain
Explain using a good example one, two and three dimensions of data.
According to your understanding, what are some of the queries that OLAP systems can process?
Advantages of an OLAP System
Multi-dimensional data representation. Consistency of information. What if analysis. Provides a single platform for all information and business needs
planning, budgeting, forecasting, reporting and analysis.

Fast and interactive ad hoc exploration.
OLTP vs. OLAP

OLTP Online Transaction Processing Data in Operational/Transactional Data OLAP Online Analytical Processing Data out Data extracted from various operational data sources, transformed and loaded into the data warehouse Manage (control and execute) basic Assists in planning, budgeting, business tasks forecasting and decision making Current data. Far too detailed not Historical data. Has support for suitable for decision making summarization and aggregation. Stores and manages data at various levels of granularity, thereby suitable for decision making Very frequent updates and inserts Periodic updates to refresh the data warehouse Simple queries, often returning fewer Often complex queries involving records aggregations Usually returns fast Queries usually take a long time (several hours) to execute and return Field level access Typically aggregated access to data of business interest
Focus Source of data
Purpose of data Data contents
Inserts and updates Queries Processing speed
Access
OLTP vs. OLAP

OLTP
Database Design
OLAP
Online Analytical Processing Typically de-normalized tables; uses star or snowflake schema
Mostly read Instead of regular backups, data warehouse is refreshed periodically using data from operational data sources Few Common Multi-dimensional
Operations Backup and Recovery
Online Transaction Processing Typically normalized tables. OLTP system adopts ER (Entity Relationship) model Read/Write Regular backups of operational data are mandatory. Requires concurrency control (locking) and recovery mechanisms (logging)
Many
Joins
Derived data and aggregates Rare Data Structures Complex
Few Sample Queries
Search & locate student(s) Print student scores Filter students above 90% marks
Which courses have productivity impact on-the-job? How much training is needed on future technologies for nonlinear growth in BI? Why consider investing in DSS experience lab?
Do it Exercise
Study the Data models for OLTP and OLAP systems

Hint: ER modeling, Star and Snowflake Schema
OLTP and OLAP
Should OLAP be Performed Directly on Operational Databases?

OLTP systems support multiple concurrent transactions. Therefore the OLTP systems have support for concurrency control (locking) and recovery mechanisms (logging). An OLAP system on the other hand requires mostly a read only access to data records for summarization and aggregation. If concurrency control and recovery mechanisms are applied for such OLAP operations, it will severely impact the throughput of an OLAP system.
OLAP Operations on Multi-dimensional Data

Slice Dice Roll-up Drill down Drill through Drill across Pivot/Rotate
Do It Exercise
Hands on practice on the various OLAP operations on multi-dimensional data.
Hint: Provide the participants with a sample data sheet (Excel sheet) and ask them to demonstrate their understanding of the various OLAP operations on multi-dimensional data.
OLAP in BI
Will using BI/Analytics in conjunction with ERP systems prove advantageous to the enterprise? Why?
Leveraging ERP Data Using Analytics

ERP provides several business benefits, here we enumerate the top three: 1. 2. 3. Consistency and reliability of data across the various units of the organization. Streamlining the transactional process. A few basic reports to serve the operational (day-to-day) needs. In short ERP systems are adept at capturing, storing and moving the data across the various units smoothly. It is however inept at serving the analytical and reporting needs of the organization.
Summary please
Ask a few participants of the learning program to summarize the lecture.

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Chapter 3 Introduction to OLTP and OLAP

Learning Objectives and Learning Outcomes

Lecture time Q/A

: 90 minutes approx. : 15 minutes

Answer a Quick Question

Queries that an OLTP System can Process

Advantages and Challenges of an OLTP System

The Queries that OLTP Cannot Answer

Answer a Quick Question

Advantages of an OLAP System

planning, budgeting, forecasting, reporting and analysis.

OLTP vs. OLAP

Focus Source of data

Purpose of data Data contents

Inserts and updates Queries Processing speed

OLTP vs. OLAP

Operations Backup and Recovery

Derived data and aggregates Rare Data Structures Complex

Few Sample Queries

Study the Data models for OLTP and OLAP systems

OLTP and OLAP

Should OLAP be Performed Directly on Operational Databases?

OLAP Operations on Multi-dimensional Data

Hands on practice on the various OLAP operations on multi-dimensional data.

Answer a Quick Question

Leveraging ERP Data Using Analytics

Ask a few participants of the learning program to summarize the lecture.

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